Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
True or false:Passive incomes require a lot of effort to earn.
True or false:Passive incomes require a lot of effort to earn.
False (B)
True or false: Final tax is only imposed on capital gains from the sale of real property in the Philippines.
True or false: Final tax is only imposed on capital gains from the sale of real property in the Philippines.
False (A)
True or false: The informer's reward is not subject to final tax.
True or false: The informer's reward is not subject to final tax.
False (B)
Flashcards are hidden until you start studying
Study Notes
- Individual taxpayers in the Philippines are subject to final tax on certain passive incomes.
- Final tax is imposed on interests, dividends, royalties, prizes, capital gains, and informers' rewards.
- The tax rate varies depending on the type of passive income.
- Taxpayers must submit a tax return, which is a sworn statement declaring their tax liability for the year.
- An income tax return reports the taxpayer's income and allowable deductions.
- Passive incomes require very little effort to earn.
- The tax applies to passive incomes received from sources within the Philippines.
- Capital gains from sales of shares of stock or real property are subject to final tax.
- Cash and property dividends from domestic corporations are also subject to final tax.
- The informer's reward to persons instrumental in the discovery of violations of the Tax Code or in the discovery and seizure of smuggled goods is also subject to final tax.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
